News & Insights

Key UK Energy Regulatory Developments for this year as far

Peter Bryant

25/6/2026

Business Efficiency

1. Grid Connections Reform Moves into Delivery Phase

One of the biggest structural changes is the overhaul of Britain's grid connection process. Historically, many renewable, storage and demand-side projects have faced lengthy connection queues. Ofgem and the National Energy System Operator (NESO) are now implementing reforms designed to prioritise viable projects and accelerate connections. Businesses considering solar, battery storage, EV charging infrastructure or electrification projects should see improved visibility on connection times over the coming years.

Why it matters: Faster connections could improve the economics and timing of on-site generation and electrification projects.

For those also building new care homes it will also improve efficiency of metering installation and live power. (We can help care homes with this and tender it out to new connection providers for lowest cost whilst arranging metering installation and live power, complete the process for them after the siteworks part by the distribution network operator is done from road/sub station to end tails)

This is also why Transmission Network Costs have increased dramatically to recover revenue to pay for the upgrade. Under the new Network Charging Frameworks (RIIO-3) which began in April 2026, governing investment across electricity transmission and gas distribution networks through 2031.

2. Major Reform of Ofgem's Role

The government announced the most significant review of Ofgem since its creation. The regulator is expected to receive stronger consumer protection powers, expanded oversight responsibilities and a broader enforcement toolkit.

Why it matters: Suppliers, Generators, Energy Brokers and energy service providers are to face increased scrutiny, improving market standards but also increasing compliance requirements.

It should greatly improve the behaviour of rogues.

I am involved in a TPI Working panel with Ofgem helping to reform the energy broker part.
3. Carbon Budget and Net Zero Policy

The government is considering a legally binding target to reduce greenhouse gas emissions by 87% by 2040 as part of the UK's Seventh Carbon Budget. While the target remains subject to parliamentary approval, it signals continued policy support for electrification, renewables and decarbonisation initiatives.

Why it matters: Care Homes should expect increasing policy incentives and reporting expectations around carbon reduction and energy efficiency.

4. Electricity Market Reform Remains on the Agenda

The government's broader Review of Electricity Market Arrangements (REMA) continues to evolve. While proposals for zonal electricity pricing appear to have been set aside, policymakers are still exploring ways to reduce the impact of gas prices on electricity costs and improve market efficiency.

Why it matters: Future market reforms could significantly affect long-term electricity pricing and procurement strategies.

Our clients will be kept informed of these developments, click the link below to register for you free energy review.

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